EML Payments (EML) H1 2026 earnings summary

Executive summary

• FY26 marks the final year of restructuring, with operational transformation progressing as planned and a focus on sustainable double-digit growth, management refresh, and improved operational efficiency.

• Commercial and product teams have been revitalized, with product development embedded in operations and expanded to meet customer-driven demand, including a major mobility project nearing MVP launch.

• EML 2.0 strategy and Project Arlo are advancing, with a global operating model, unified technology platform, and enhanced commercial execution.

• Cost base remained well-controlled, with employee and professional fee savings offset by higher VAT/GST and increased share-based payments for new leadership.

• Cash balance at period end was $47.8 million, down $11.5 million, mainly due to class action settlement, PFS loan repayment, and Arlo CapEx.

Financial highlights

• Revenue for H1 FY26 was AUD 108.4 million, down 6% year-over-year; customer revenue (ex-interest) down 4% to AUD 79.4 million; interest income fell 11% to AUD 29 million.

• Underlying EBITDA declined 16% year-over-year to AUD 28 million, impacted by one-off items and client terminations.

• Statutory NPAT was $(4.0)m, down from $9.5m in the prior period; EPS was (1.04) cps.

• Cash used in operations was $33.2 million, including $35.4 million class action settlement.

• Overheads were well managed, down marginally year-over-year and 2% sequentially from H2 FY25.

Outlook and guidance

• FY26 underlying EBITDA guidance narrowed to AUD 58–60 million due to onboarding lags and slower customer implementation.

• Pipeline target set at AUD 125 million by year-end, with focus on onboarding, commercial execution, and technology deployment.

• Aspirational FY28 targets remain unchanged.

• Continued investment in Arlo and commercial team expansion planned for H2.

• Management expects to continue as a going concern, supported by updated cash flow forecasts and undrawn debt facilities of $41 million.